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Analysis of different cost allocation methods in a collaborative transport setting

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  • VANOVERMEIRE, Christine
  • VERCRUYSSE, Dries
  • SÖRENSEN, Kenneth

Abstract

In collaborative transport, dividing the total cost of the coalition between its different partners is a key issue. However, as each coalition has its own set of preferences and has partners with different characteristics, a cost allocation method suitable in all situations does not exist. In this paper, a set of cost allocation methods, some academic, some used in practice, are evaluated in different situations. We investigate how well these methods behave when partners have different characteristics. E.g., when one partner ships a much larger volume than the others, it is very likely that this partner does not agree to allocate costs according to the volume of each partner. We show which cost allocation methods suffice in which situations, showing that a right cost allocation is highly dependent on the characteristics of the coalition.

Suggested Citation

  • VANOVERMEIRE, Christine & VERCRUYSSE, Dries & SÖRENSEN, Kenneth, 2013. "Analysis of different cost allocation methods in a collaborative transport setting," Working Papers 2013009, University of Antwerp, Faculty of Business and Economics.
    • Handle: RePEc:ant:wpaper:2013009
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    References listed on IDEAS

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    1. Aumann, Robert J. & Maschler, Michael, 1985. "Game theoretic analysis of a bankruptcy problem from the Talmud," Journal of Economic Theory, Elsevier, vol. 36(2), pages 195-213, August.
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    Cited by:

    1. Behzad Hezarkhani & Marco Slikker & Tom Woensel, 2016. "A competitive solution for cooperative truckload delivery," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 38(1), pages 51-80, January.
    2. DEFRYN, Christof & VANOVERMEIRE, Christine & SÖRENSEN, Kenneth & VAN BREEDAM, Alex & VANNIEUWENHUYSE, Bart & VERSTREPEN, Sven, 2014. "Gain sharing in horizontal logistic collaboration. A case study in the fresh fruit and vegetables sector," Working Papers 2014004, University of Antwerp, Faculty of Business and Economics.
    3. Vanovermeire, Christine & Sörensen, Kenneth, 2014. "Integration of the cost allocation in the optimization of collaborative bundling," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 72(C), pages 125-143.

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